Little Rock Board Rejects $6 Million Loan to Save Public Housing Complex from Foreclosure
LITTLE ROCK, Ark. — In a significant decision on Tuesday, the Little Rock Board of Directors voted against a critical $6 million short-term loan intended to prevent foreclosure on part of the Madison Heights apartment complex, managed by the Metropolitan Housing Alliance (MHA). Located at 1504 Madison St., Madison Heights is a mix of federally subsidized and market-rate units.
The housing authority is facing foreclosure on Madison Heights I and II, against which it owes $5.4 million, with a deadline looming on August 1. Mayor Frank Scott Jr. described the decision as a setback, stating that the board’s rejection of the loan is a major obstacle in efforts to save the properties.
The board’s vote was split 5-3, with support from Ward 2 Director Virgil Miller, Ward 6 Director Andrea Lewis, and At-Large Director Joan Adcock. Opposing the loan were Ward 7 Director B.J. Wyrick and At-Large Director Dean Kumpuris. Two additional items on Tuesday’s agenda, which passed 6-2, aimed to initiate legal procedures to safeguard Madison Heights and engage an attorney for further action, but Mayor Scott emphasized that without the loan, these measures may ultimately prove ineffective.
“If we don’t secure the funding, we may lose Madison Heights,” Scott warned, pointing out that the next month is pivotal for the complex’s future. Currently, residents of Madison Heights I and II are protected by annual leases, securing their housing until the end of the year at the earliest. Over 70% of these residents rely on federal assistance to afford their rent, raising concerns about potential displacement amid the ongoing financial crisis. The local government now faces critical challenges in its efforts to maintain affordable housing for its residents.
Note: The image is for illustrative purposes only and is not the original image associated with the presented article. Due to copyright reasons, we are unable to use the original images. However, you can still enjoy the accurate and up-to-date content and information provided.
